There have been many lessons to learn from the "Great Recession." But while the message is often clear, we can't always muster the courage, discipline or consensus to act on these lessons.

The National Basketball Association (NBA) is about to enter its second season -- the playoffs. And for a Laker fan in Los Angeles, there is much to look forward to. However, the current NBA collective bargaining agreement will end and we will have to witness another battle between the billionaires and the millionaires.

Why can't the NBA learn from other businesses that have successfully maneuvered through economic turmoil to achieve profitability?

Continue reading Chasing Value: The NBA Should Learn from Others

Chasing Value: The NBA Should Learn from Others originally appeared on BloggingStocks on Mon, 04 Apr 2011 13:20:00 EST. Please see our terms for use of feeds.

In the middle of the summer with the stock market smoldering from the economic aftershocks of the BP (BP) oil spill, I decided to post a contrarian story emphasizing a very common refrain among value investors, "my pal Warren" being head of the class: buy on fear (sell on greed). This notion is continuing to work for what I called the toxic stock portfolio.

This is the third update to my ranting five months ago that six of the most reviled and most highly traded stocks featured by daily bad press as a group would outperform the overall market. It has, with the big winner rising from being one of the biggest losers.

Continue reading Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG

Chasing Value: Toxic Stock Update #3 -- BAC, BP, C, GE, GS, RIG originally appeared on BloggingStocks on Mon, 13 Dec 2010 12:00:00 EST. Please see our terms for use of feeds.

This company has been on my recommended list for longer than any other company in the four and a half years that I have been writing for BloggingStocks -- with only one exception, Intuitive Surgical (ISRG). The company is EZCorp (EZPW), which beat the Street again with third quarter earnings per share of $0.56, three cents better than the analyst estimate.

Revenue for the quarter was $198.2 million, which tops the estimate of $191.01 million. The company projects 2011 earnings higher too: EPS of about $2.35 vs. an estimate of $2.25. EZCorp grew earnings by 33% and increased its footprint by 127 stores through new construction and acquisitions.

Continue reading Chasing Value: Apple's Great, but This Stock Is Better!

Chasing Value: Apple's Great, but This Stock Is Better! originally appeared on BloggingStocks on Fri, 05 Nov 2010 12:00:00 EST. Please see our terms for use of feeds.

It was only a month ago I wrote a story comparing Oracle Corp. (ORCL) and Hewlett Packard (HPQ), concluding the latter to be the better opportunity from a value investor's perspective. At the time Oracle was $27.49. Yesterday it closed at a new 52-week high of $29.23 -- a gain of 6.33%.

During this time, Oracle insiders have been selling shares and the trend is negative. In September alone, almost $300 million of the stock was sold off. If you examine Barron's weekly summary of insider activity, as one source, you will find that Oracle has been in the top five companies on the sell side for many weeks. As the stock has been rising, insiders have been selling into strength.

Continue reading Chasing Value: Oracle Insiders Selling as Stock Hits 52-Week High

Chasing Value: Oracle Insiders Selling as Stock Hits 52-Week High originally appeared on BloggingStocks on Tue, 19 Oct 2010 10:20:00 EST. Please see our terms for use of feeds.

During the second quarter I wrote a series of stories about stocks that might interest "my pal Warren" in the global market. One such stock in the June 24 post was National Grid PLC (NGG), which closed Friday October 8 at $45.43.

At the time of the recommendation, the stock was at $37.81. It was 33% off its high and, besides strong fundamentals, is a company that resembles Berkshire Hathaway's (BRK.A) Mid-American utility holdings. I thought it would be a good fit for further integration and growth of this division, given that both also have British and U.S. enterprises.

Continue reading Chasing Value: National Grid -- Maybe Warren Did

Chasing Value: National Grid -- Maybe Warren Did originally appeared on BloggingStocks on Mon, 11 Oct 2010 14:00:00 EST. Please see our terms for use of feeds.

Having accepted a speaking engagement at a university school of business recently, I had to think about what introductory information I could impart to the students about investing that would be practical, immediately useful and establish a foundation for whatever direction their paths might lead. This was supposed to be the first in a series. However, since I pull no punches and can be a little edgy in my candor and presentation, who knew if I would be invited back?

My outline had five basic elements. The first thing I told them was to start now!

Continue reading Chasing Value: Class Is in Session -- Where to Start

Chasing Value: Class Is in Session -- Where to Start originally appeared on BloggingStocks on Mon, 13 Sep 2010 13:00:00 EST. Please see our terms for use of feeds.

Where did they go? Why have we not heard from them? We have heard what the rig survivors had to say, as well as the government inspectors, regulators and elected officials. BP (BP) senior management has spoken out often. We have heard from Gulf coast clean-up crews, the Coast Guard, insurance underwriters and affected business people.

Perhaps I just missed it, but I do not recall hearing anything from someone whose job it is to observe and report on safety and risk at BP facilities?

Continue reading Chasing Value: BP's Risk Manager Missing in Action

Chasing Value: BP's Risk Manager Missing in Action originally appeared on BloggingStocks on Wed, 08 Sep 2010 12:20:00 EST. Please see our terms for use of feeds.

If there ever was a company that could and should be bought out, it's WD-40 (WDFC). The company has been doing well in these tough times, and guidance is for more of the same.

Perhaps that is because almost every household in America probably has a can of WD-40 in the utility closet, garage or workroom in case they need to get out of a jam or just plain un-jam something. The aerosol in the blue and yellow can has been a reliable lubricant and rust preventative for decades. It is the primary revenue-generating product for the company, but it is not the only one.

Continue reading Chasing Value: WD-40 -- A Buyout Candidate?

Chasing Value: WD-40 -- A Buyout Candidate? originally appeared on BloggingStocks on Wed, 08 Sep 2010 09:30:00 EST. Please see our terms for use of feeds.

Last January I suggested that shares of Ross Stores (ROST) might be as much of a bargain as the merchandise it sells. That turned out to be true. The stock has outpaced the market considerably. At the time, it was trading at $45.20. Last week, on Sept. 3, Ross closed at $52.60 for a year-to-date gain of 16.37%.

Ross pays a small dividend yielding 1.12%. It is not high, but it exceeds what you're getting from money market accounts or CDs and, added to the stocks appreciating, it's a bonus.

After this nice gain, how do the metrics shape up today? Is it too late to make some money here?

Continue reading Chasing Value: Ross Stores Update, Great Then and Now

Chasing Value: Ross Stores Update, Great Then and Now originally appeared on BloggingStocks on Tue, 07 Sep 2010 10:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: No Double-Dip Recession

Chasing Value: No Double-Dip Recession originally appeared on BloggingStocks on Wed, 01 Sep 2010 14:00:00 EST. Please see our terms for use of feeds.

I have always felt that for all the blabbing we do -- or blogging, in my case -- we should try as best we can to be accountable for our good and bad calls. This report is long overdue, but I will post it anyway since all of my past year's picks and results have been made public.

The market was very harsh in the early part of 2009, filling investors fear and trepidation, and sinking to a March 9, 2009 bottom. Perhaps some of the bleeding has stopped, but the economy has not healed as bears and bulls seem to carry the day, or every other day.

Continue reading Chasing Value™: 2009 Results Crushed the S&P 500

Chasing Value™: 2009 Results Crushed the S&P 500 originally appeared on BloggingStocks on Tue, 31 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

Investors are running scared again and that always means that stock bargains are not far behind. Apple Inc. (AAPL) dropped another $5.87 Tuesday, landing at $239.93, and another 8 cents was lost after-hours. For most of the year I have felt that Apple was not cheap and was not going to hit $300 per share, contrary to almost anyone else with a voice. Now I feel it is worth watching as things might get silly to the downside.

Apple rose to a high of $279.01 before pulling back 14%. That is not enough of a margin of safety for me, but it has become interesting again. It clearly has earned a spot on my watch list.

Continue reading Chasing Value: Apple Falling, Opportunity Calling

Chasing Value: Apple Falling, Opportunity Calling originally appeared on BloggingStocks on Wed, 25 Aug 2010 10:00:00 EST. Please see our terms for use of feeds.

Until recently, my largest positions were in financial stocks Citigroup (C), Wells Fargo (WFC) and Bank of America (BAC). As a contrarian investor, I do buy on fear and sell on greed as "my pal Warren" has advised for many years. This has worked out to be very profitable over the past 18 months. However, in the past 30 days the financial stocks have dropped to second place in favor of oil and gas stocks.

I think the economic recovery is moving at a snail's pace, lowering anticipated demand for oil while gas was already depressed based on the same factors and the addition of numerous new large supplies. Add to this the mess in the Gulf of Mexico and the public's already negative sentiment about oil companies and you have the makings of depressed pricing in the sector.

Continue reading Chasing Value: Buffett Must Be Buying Oil

Chasing Value: Buffett Must Be Buying Oil originally appeared on BloggingStocks on Mon, 02 Aug 2010 11:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Shocked By Toxic Stock and Still Finding Deals

Chasing Value: Shocked By Toxic Stock and Still Finding Deals originally appeared on BloggingStocks on Tue, 20 Jul 2010 15:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: Buying a Toxic Portfolio -- BP, RIG, C, GS, BAC and GE

Chasing Value: Buying a Toxic Portfolio -- BP, RIG, C, GS, BAC and GE originally appeared on BloggingStocks on Mon, 19 Jul 2010 14:00:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: American Eagle Will Soar Again

Chasing Value: American Eagle Will Soar Again originally appeared on BloggingStocks on Wed, 30 Jun 2010 16:40:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: E-Trade Is Adrift

Chasing Value: E-Trade Is Adrift originally appeared on BloggingStocks on Mon, 07 Jun 2010 14:10:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: BP and Its Shareholders Will Clean Up

Chasing Value: BP and Its Shareholders Will Clean Up originally appeared on BloggingStocks on Tue, 04 May 2010 13:30:00 EST. Please see our terms for use of feeds.

Continue reading Chasing Value: EZCORP Easily Beats the Street

Chasing Value: EZCORP Easily Beats the Street originally appeared on BloggingStocks on Mon, 26 Apr 2010 15:30:00 EST. Please see our terms for use of feeds.

About five weeks ago, I posted Chasing Value: Berkshire Eating Up Apple -- Can It Continue? Today I thought I would take another peek to see how Berkshire Hathaway (BRK.B) and Apple Inc.(AAPL) compare now.

Both companies are led by much-admired iconic figures who standout for their extreme success and business leadership. Both Warren Buffett and Steve Jobs are practically worshiped by their shareholders, and for good reason -- both companies have added value during the past ten years, a time when most companies have not, and some are just not -- they're gone.

Continue reading Chasing Value: Apple Closing in on Berkshire

Chasing Value: Apple Closing in on Berkshire originally appeared on BloggingStocks on Wed, 07 Apr 2010 13:00:00 EST. Please see our terms for use of feeds.